How much additional overhead should she expect to incur

Reference no: EM132985082

Question: Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angie has gathered the following cost information from the past year:

Month    labor hours                overhead cost

January 3,600 $65,320
February            2,900                       62,320
March                3,000 63,320
April                   4,100    67,320
May                   4,400                      70,320
June    5,600                      74,320
July                   7,900                      83,320
August               7,600                     80,320
September          6,500                    75,320
October              4,600 71,320
November           3,200                     65,320
December    6,600    76,320
Total 60,000                    $854,840

B. Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur?

C. If Angie books one more catering job for the month, requiring 350 labor hours, how much additional overhead should she expect to incur?

Reference no: EM132985082

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